This is to anyone worried about not having enough space for HD videos. One thing you can do is convert all your music from whatever format their in into aac files the High Efficiency AAC codec. You can convert them all the way down to 80kbps and it would still sound the same as an MP3 encoded at around 196kbps, at more than half the file size. For example, I just converted an album of 16 songs that was previously 121 MB using the Low Complexity AAC profile, and it wound up being 38 MB in total after conversion, at the same quality! Its simple to do this. - Open iTunes - Go to Edit --> Preferences - In the General tab, click the Import Settings... button (These are the settings that are used when iTunes is ripping a CD, but I also found out its the same ones that iTunes uses to make its AAC files) -Under "Import Using", choose AAC Encoder -Under Setting, choose Custom, and use these settings: Stereo Bit Rate: 80kbps Sample Rate: Auto Channels: Stereo Check "Use High Efficiency" ONLY. (IMPORTANT) Hit all the OK's and your done. To convert a file, simply right click it in iTunes and click "Create AAC Version". The files convert quite quick. Results: Original: 5 Minutes, 13 Second song @ 256kbps AAC (Low Complexity) = 9.91MB Converted: 5 Minutes, 13 Second song @ 80kbps AAC (High Efficiency) = 3.01MB Took about 20 seconds to convert Quality = INDISTINGUISHABLE! I consider myself a "budget audiophile" with a decent pair of in-ear headphones and have a keen ear with music and quality. Trust me, its worth it. My tiny 145 song library which was about 900MB wound up being 330MB after conversion. Thats 36% of the original size. This would definitely add up for those of you who have GB's worth of music. Depending on your original file bit rates, you could potentially have around 20 GB or more worth of music stored on an 8GB iPod Touch.